CITY OF WILLIAMS NOTICE OF PUBLIC HEARING: INCREASES TO RATES FOR WATER SERVICE FEES

A notice was previously mailed out on January 7, 2013 with the proposed water rate increases. Due to noticing requirements, a new public hearing has been scheduled to implement the previously proposed increases.

NOTICE IS HEREBY GIVEN that the City of Williams (‘City’) will hold a Public Hearing on Wednesday June 19, 2013 at 7:00 p.m. in the City Council Chambers, located at 810 E Street, City of Williams, CA 95987, to consider the adoption of increases to the rates for its water service fees to the parcel for which you are shown as the record owner or customer of record. The amount of the rate increases proposed to be imposed on your parcel and the basis upon which they were calculated is described in more detail below under the caption “Proposed Rate Increases.”

The purpose of the hearing is to consider all written protests against the rate increases to the City’s water service fees proposed to be imposed on parcels within the City. As the record owner or customer of record of a parcel identified to be subject to the imposition of the proposed rate increases, you may submit a written protest against the proposed rate increases. Provided, however, if the identified parcel has more than one record owner and/or customer of record, only one written protest will be counted. Each protest must (1) be in writing; (2) state that the specific water rate increase for which the protest is being submitted in opposition; (3) provide the location of the identified parcel (by assessor’s parcel number or street address); and (4) include the original signature of the record owner or customer of record submitting the protest. Protests submitted by e-mail, facsimile, or other electronic means will not be accepted. Written protests may be submitted by mail to the City Clerk, City of Williams, at P.O. Box 310, Williams, CA 95987, or in person at the public hearing, so long as they are received prior to the conclusion of the public hearing. Please identify on the front of the envelope for any protest, whether mailed or submitted in person to the City Clerk, that the enclosed letter is for the Public Hearing on the Proposed Water Rate Increases.

At the conclusion of the public hearing, the City Council will consider adopting the proposed rate increases to the water service fees. Oral comments at the public hearing will not qualify as formal protests unless accompanied by a written protest. If, at the close of the public hearing, written protests against the proposed rate increases as outlined above are not presented by a majority of the record owners or customers of record of the identified parcels upon which they are proposed to be imposed, the City Council will be authorized to impose the rate increases. If adopted, the rate increases for the water service fees are proposed to be effective for bills dated on or after December 1, 2013, and on each December 1, thereafter through and including December 1, 2015.

PROPOSED RATE INCREASES

City staff has reviewed the current water rate structures and determined that increases to the rates are necessary in order to recover sufficient revenues to operate and maintain the City’s water systems. The proposed rate structures for the water service fees will provide revenues that (1) recover costs reasonably borne in providing the services; (2) are equitable to all customer classes; and (3) are proportionate to the cost of the service attributable to the parcels within each customer class. This equates to an approximate annual increase of 7% per year over the three year period.

WATER RATE INCREASES

The water rate increases are needed in order to fund: (1) the addition of water filters, booster pumps, maintenance of adequate water service and supply, and a water reservoir; (2) current and projected increases in the costs of operations and maintenance of the water system; and (3) ongoing repair and replacement costs for current water system capital facilities. The rate structure for water service fees has two components: (1) a fixed monthly component; and (2) a variable (water consumption-based) component. The first component is a fixed amount calculated to recover the City’s fixed costs of operating and maintaining the water system and is established on the basis of the customer class of the property owner or customer receiving water from the City. The variable component of the rate structure will generally impose higher charges as the level of water consumption increases. The variable component is structured in such a way as to internalize the costs of providing water and to deter waste and encourage efficiency. Together, the components are calculated to recover the proportionate cost of providing water service attributable to parcels within each customer class.

The proposed water rates, if adopted and the effective dates for their implementation are as follows:

Proposed Water Rates

Customer Class

Number of Customers

Current Rates

Fixed Monthly Rates ($/month/account)*

Effective on December 1 of Each Year

2013

2014

2015

5/8”-3/4” Meters

1,182

$16.67

$17.84

$19.09

$20.43

1” Meters

117

$27.47

$29.40

$31.46

$33.67

1.5” Meters

21

$54.24

$58.04

$62.11

$66.46

2” Meters

21

$86.49

$92.55

$99.03

$105.96

3” Meters

8

$188.72

$201.94

$216.08

$231.21

4” Meters

1

$323.05

$345.67

$369.87

$395.77

Consumptive Rates ($/hcf**)

5/8”-3/4” Meters

1,182

$1.46

$1.57

$1.68

$1.80

1” Meters

117

$1.46

$1.57

$1.68

$1.80

1.5” Meters

21

$1.46

$1.57

$1.68

$1.80

2” Meters

21

$1.46

$1.57

$1.68

$1.80

3” Meters

8

$1.46

$1.57

$1.68

$1.80

4” Meters

1

$1.46

$1.57

$1.68

$1.80

*Includes a minimum consumption of 5 hcf per month.

**hcf = hundred of cubic feet

For further details or questions regarding the reasons for the proposed rate increases for the City’s water service fees to be imposed on your property parcel, please contact Rex Greenbaum, Finance Officer, at (530) 473-2955 located at 810 E Street, Williams, California 95987 or visit the City’s website at www.cityofwilliams.org.

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